Rail business boosts software firm Tracsis

Tracsis, the software company that works to ensure trains run on time, said group revenues are well ahead of the previous year at over £26m.

Chris Barnes, chief executive of Tracsis

The Leeds-based firm, a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, said profits in the six months to January 31 are also expected to be ahead.

The firm said cash balances remained strong at around £26m.

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The group said its Rail Technology & Services division traded well, benefiting from high levels of recurring software revenue and income from multi-year contract wins from previous years.

All of the firm's rail businesses were involved in major tenders during the period, which should pave the way for further organic growth.

Tracsis said its recent acquisition Bellvedi, a software company that operates within the rail industry and specialises in timetabling software, also performed well and is now a key part of its industry leading TRACS Enterprise solution.

The firm said its Traffic & Data Services division is highly second-half weighted, but it performed ahead of expectations with a very strong contribution from the acquired businesses CTM and Compass Informatics, where integration is progressing well.

Tracsis said it continues to invest heavily in its technology base and continues to make good progress developing the next generation of products for the transport industry.

The group is reviewing acquisition opportunities, particularly in the Rail Technology & Services division.

Analyst Andrew Darley at FinnCap said: "With a return to market positivity supporting stronger valuations, and Tracsis delivering the envious combination of proven execution and the opportunity within the £26m cash pile, we lift our price target to 900p from 775p."

The firm's interim results will be announced on April 2.